Hearing adjourned to consider fresh information

THE High Court has adjourned attempts by the country’s financial watchdog to put a beleaguered insurance firm, owned by tycoon Seán Quinn, into permanent administration.

Lawyers for the Financial Regulator told a Dublin court they had received fresh information from Quinn Insurance and asked for a one-week delay.

John Hennessy, senior counsel for the regulator, said officials received a lengthy affidavit from the company yesterday morning. “While it does not appear to go in substance into several of the very serious concerns of the regulator in this matter, it nevertheless merits careful consideration by the regulator and a response,” the lawyer said.

Mr Hennessy told the President of the High Court, Mr Justice Nicholas Kearn, his client was seeking an adjournment because it wished to respond to a lengthy affidavit filed on behalf of the company.

Last month the court approved the appointment of Paul McCann and Michael McAteer of Grant Thornton as joint provisional administrators to Quinn Insurance Ltd, Dublin Road, Cavan following an ex-parte application by the Central Bank, acting through the Irish Financial Services Regulatory Authority (Financial Regulator).

Regulator Matthew Elderfield sought their appointment in light of the “very serious concerns” it had about the financial position the Seán Quinn-founded company, which employs more than 5,000 people and operated in Ireland and Britain. Yesterday, counsel said while that affidavit did not address the regulator’s “very serious concerns” about Quinn Insurance’s position it merited “careful consideration” and a response from the regulator.

Counsel suggested to the court the regulator would file its response to Quinn Insurance’s affidavit by Wednesday of this week, and the company could file any response by Friday.

Counsel said the regulator was anxious the application to confirm the administrators go ahead as soon as possible.

Mr Michael Cush SC for Quinn said the company was consenting to the adjournment, and suggested the regulator’s final response could be filed by next Monday rather than Friday. Counsel suggested the matter could be heard later than Monday of next week.

However, Mr Justice Kearns, noting the importance and urgency of the case, said it would proceed next Monday. The judge also ordered the provisional administrators remain in place until after the full hearing is concluded.

The court also heard from Bernard Dunleavy BL, for the provisional administrators, that they had prepared a report which was filed with the court.

Two weeks ago Mr Justice John Cooke said he was satisfied to appoint provisional administrators to Quinn Insurance.

The regulator sought the appointments claiming that the company had “significantly breached” its’ solvency ratios, that its subsidiaries had entered ins series of guarantee agreements that had reduced its assets by some €448 million, and had failed to deliver a financial plan aimed at restoring its financial health.